Guinea to raise N8b capital

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GUINEA Insurance Plc is set to raise N8b additional capital ahead of recapitalisation deadline, the newly appointed Chairman, Board of Directors, Barrister Godson Ugochukwu has said.

In a statement made available to journalists, the Chairman stated that consequent to the June 30th, 2020 deadline given by National Insurance Commission (NAICOM) for firms to comply with its new capital regime, shareholders of the underwriting firm at its 61st Annual General Meeting held recently in Uyo, Akwa Ibom State embraced its recapitalisation plan to increase its capital base to N12 billion.

He stated that with the approval, the firm hopes to increase its authorised share capital from N4 billion to N12 billion by the addition of the sum of N8 billion divided into 16,000,000,000 billion ordinary shares of 50 kobo each ranking in all respect pari-pasu with the existing shares of the Company.

He said: “Options available to us to recapitalise are either to: approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into the company or consider the possibility of a merger with another company operating in the general insurance business portfolio. In any case, the board had engaged the services of professional parties and advisors to provide matter-of-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.

“Shareholders of the firm however re-elected me as the Chairman, Board of Directors; Samuel Onukwue and Simon Bolaji as Non-Executive Directors. In like manner, Ademola Abidogun’s appointment as Managing Director/Chief Executive Officer was unanimously ratified by shareholders of the Company”, he noted.

Source: THE NATION

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